Zee Entertainment Enterprises Ltd (ZEEL) has asked Culver Max Entertainment Private Limited (CMEPL, formerly known as Sony Pictures Networks India Pvt Ltd) to extend the timeline to complete themuch-awaited mergerbetween the media giants.

In a disclosure to the Bombay Stock Exchange, ZEEL said, “Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR Regulations’), we hereby inform you that pursuant to the Merger Cooperation Agreement dated December 22, 2021 entered into amongst the Company, BEPL (Bangla Entertainment Private Limited) and CMEPL, the Company has requested CMEPL and BEPL to extend the Date required to make the Scheme effective, as per the terms of the Merger Cooperation Agreement.”

Earlier, industry insiders had said that the listing of theZee-Sony merged entity, which will create a $10 billion media and entertainment powerhouse, could happen anytime in January next year and the record date could be set by November-end.

Speaking of thedelay in the merger, experts said, the extension in timeline won’t have major regulatory hurdle, as the NCLT approval is not time bound.

“This is only a mutually agreed date between two parties subject to shareholder and Board approvals; further appeals filed by Axis and other lenders in NCLAT too won’t negatively impact merger, as NCLT approval is without any conditions,” said Karan Taurani, Senior Vice President, Elara Capital.

Earlier, there were reports of turbulences in the big merger with Sony issuing a statement on the delay.

Themerger processwas originally supposed to be completed by the end of September 2023, before the deadline was extended to December 22 due to legal complexities involving Zee.

Thejourney of the mergerbegan in December 2021 with ZEEL’s Board of Directors considering and approving the Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013 (Scheme). However, the merger process soon got into trouble after several ZEEL lenders raised objections.

On August 10, dismissing all objections raised by the lenders, the National Company Law Tribunal (NCLT) approved the merger.

According to industry experts, the merged companies will own over 70 TV channels, two video streaming platforms – ZEE5 and Sony LIV – and film studios – ZEE Studios and Sony Pictures Films India – with a market share of 26%.

With this merger,ZEE and Sonywill have an audience of over 700 million people in its television and digital verticals, which will enhance their market presence and give them a bigger slice of the advertising pie.